Can you provide an update on the progress of Citi’s FX Algo product?
We are pleased to report substantial progress across several key areas of our FX algorithmic trading product, reflecting the diligent efforts of our dedicated team.
What can you tell us about the volume growth you have experienced?
We’ve seen significant volume growth this year. Continuing our growth from last year, Dynamic Algo volumes are up over 40%. Our Arrival strategy remains increasingly popular with clients, as do some of our more aggressive algos, especially when utilised in conjunction with a take profit/stop loss level. Furthermore, emerging markets have demonstrated particularly strong growth, and within that segment, Non-Deliverable Forwards (NDFs) are increasingly important to clients leveraging algorithmic execution.
What is the scope of your NDF offering within the algo suite?
We maintain a comprehensive NDF algo offering, with all algorithms across our suite supporting Non-Deliverable Forwards. When we set out to build the new suite, we planned to support NDFs natively, so they are very well catered for in Dynamic Algos. We have been actively expanding our NDF liquidity sources, leveraging both external providers and, critically, our substantial internal franchise flows, which provides a significant competitive advantage in this evolving market segment.
What improvements have been made to execution quality?
Our commitment to superior execution quality remains a core focus. We have continuously refined the algorithm’s core capabilities, such as how and when it accesses lower impact liquidity, leading to improved market impact and slippage metrics. Additionally, for our Arrival (opportunistic) and Peg (Float) algorithms, our average execution speeds have increased in parallel to these performance improvements. This dedication to execution excellence has been a key driver in our volume growth; with the availability of robust performance data from Citi and independent TCA providers, clients are able to review evidence of the improvements and allocate flows to our algos with confidence. As ever, internalisation remains paramount; clients consistently express a desire for maximum access to our franchise liquidity. Therefore, we are constantly working on how we can provide this more effectively, while maintaining our commitment to true internalisation. A key differentiator is how we leverage Citi’s unique position, paying particular attention to how our algos benefit from Citi’s proprietary liquidity and franchise flows, leading to improved execution outcomes for our clients.
How are you engaging with clients regarding the algo product?
We have intensified our client engagement initiatives, actively soliciting and incorporating feedback from key stakeholders and pilot users. This iterative approach ensures the product’s evolution aligns directly with client requirements and delivers incremental, tangible value to them.
What are the next steps for Citi’s FX algo product?
The momentum of our product is very positive, and we have more to come. Driven by client feedback, we have several important areas currently under development around TCA (both pre and live), liquidity curation and customisation, and anticipate bringing these to market in the coming months.
